Speculative frenzy propels copper to records above $11,000 per tonne
Benchmark copper CMCU3 on the London Metal Exchange (LME) was up 2.6% at $10,944 a metric ton after peaking at $11,104.5, a gain of 30% since the start of the year
REUTERS
MAY 20, 2024 / 04:41 PM IST
COMEX copper prices also hit an all-time high of $5.1985 a lb or $11,460 a ton because of a short squeeze, where parties are forced to buy back their short positions at a loss or deliver physical copper to close them out
Copper surged to record highs on Monday as a recent rally triggered by short position covering created momentum for speculators and funds to bet on higher prices of the metal, used in the power and construction industries.
Short positions can be producers hedging their output, but often they are bets on lower prices made by traders and funds. Benchmark copper CMCU3 on the London Metal Exchange (LME) was up 2.6% at $10,944 a metric ton after peaking at $11,104.5, a gain of 30% since the start of the year.
"It's a combination of short covering and funds jumping on the bandwagon. It's a similar situation on COMEX," a copper trader said, adding that a "fair amount" of the short covering was by "Chinese players"."Producer selling, which seems to have calmed the market a little," he added.
COMEX copper prices also hit an all-time high of $5.1985 a lb or $11,460 a ton because of a short squeeze, where parties are forced to buy back their short positions at a loss or deliver physical copper to close them out.
AIS Price at posting:
33.5¢ Sentiment: Hold Disclosure: Held
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